The North Shropshire Hunt has been told of a local law which requires that all dogs on public roads must be kept on leads.
The hunt rode out of the historic livestock market in Shrewsbury on its traditional Boxing Day meet, but was unaware that under rules approved by councillors in December the hounds should have been kept on a tight rein.
After it emerged at Shrewsbury and Atcham Borough Council's full meeting last month that their dogs were not exempt, the Masters of Foxhounds Association's lawyers are trying to get the decision reversed.
Last night council officials claimed no approach had been made for the two sides to meet.
Andy Goldsmith, assistant council manager, said: "We weren't aware that they were looking to talk to us about this, but we would be happy to talk about the situation with them.
"The reality is that, under the current agreement, the hunt starts at the livestock market, by the council's offices, and we think it should be moved to another, more suitable, starting point.
"Dog control orders are in place and there's also the issue of enforcement but a deal has been made and confirmed by the council, so unless representation is made the by the hunt and justification for an exemption is made, that's the way it will stay."
Section 55 of the Clean Neighbourhoods and Environment Act of 2005 states that dogs on public roads, verges and footpaths must be kept on leads.
In a letter to hunt bosses, the council pointed out huntsmen would have to dismount and tether their hounds every time pursuit of a fox's scent leads them across public roads, verges and footpaths.
Ann Carding, senior joint master of the North Shropshire Hunt, said: "The First Shrewsbury Hunt also ride around much of the borough but they've not really had the interest or problems that we have over this matter.
"We've been hunting in this borough for years and we've never had any problems until now, and if people would just let us get on it, we wouldn't be having this conversation.
"All I can say for now is the matter has been referred to our legal team, with the Master of Foxhounds Association, who will probably want to meet the council."
Master of the hunt William Warner told the Daily Express: "They are just being silly. A by-law does already exist but it is clearly for dogs in parks in Shrewsbury.
"I would have thought that the council members should have had better things to discuss really, but clearly they did not."
One member of the hunt blamed a "mischievous" member of the council for asking at a recent meeting if the new law applied to the hunt.
Another member of the hunt, which still meets twice a week, said: "This is a chippy Labour council which has always had it in for us and took great pleasure in making things difficult when an easy way presented itself."
Brian Fanshawe, a consultant for the Council of Hunting Associations said: "We're still looking at it with our legal department. I can't believe that on every public highway, public road and footpath people have got to have their dogs on a lead. The police are going to have quite a game enforcing it."